5 Asian Bank Stocks With High Capital Ratios

by: David Hunkar

Asian banks are in a relatively better position than European and U.S. banks. Having stayed strong during the credit crisis, Asian banks continue to maintain high Tier 1 Capital Ratios and follow their conservative business models. In addition, state regulators have played a key role in strengthening the banking systems by formulating sound policies and implementing stricter standards on lending. For example, the Monetary Authority of Singapore requires domestic banks to hold a minimum Tier 1 capital adequacy ratio of 6%, which is higher than current Basel II standards. By 2015 the Central Bank will raise the minimum Tier 1 capital adequacy ratio to 8%, which is also higher than the Basel III requirements.

Investors looking to add some bank stocks from Asian countries can consider the following five OTC-traded sponsored ADRs having over 5% dividend yields:

  1. Bank: Hang Seng Bank Ltd (OTCPK:HSNGY)

Current Dividend Yield: 5.52%

Country: Hong Kong

  1. Bank: Malayan Banking BHD (OTCPK:MLYBY)

Current Dividend Yield: 6.56%

Country: Malaysia

  1. Bank: DBS Group Holdings Ltd (OTCPK:DBSDF)

Current Dividend Yield: 8.25%

Country: Singapore

  1. Bank: United Overseas Bank Ltd (OTCPK:UOVEF)

Current Dividend Yield: 5.79%

Country: Singapore

  1. Bank: BOC Hong Kong (Holdings) Ltd (OTCPK:BHKLY)

Current Dividend Yield: 6.41%

Country: Hong Kong

Note: Dividend yields noted above are as of market close January 4, 2012.

Disclosure: No positions